When to Buy your Ag Chem?

This has been the mystery of the season! Let us start by stating this: Farmerce does not want to use scare tactics to get you to buy. We feel confident enough in our system to provide what we see as the facts and let you make your own decision. The question when to buy is going to depend on a few factors but two are the most important. What is the product you are interested in and when do you plan to use it.

If you have been in agriculture the last couple years you are aware of the extreme price swings on several products, the most extreme being Glyphosates and Glufosinates. These two actives in particular has recently seemed to settle in and it is looking like they have it very close to a low. This is not to say that they will jump up in price soon as tech cost in China have not bounced back from record lows but it looks unlikely that they go down further. On Glyphosate channel inventory is much lower than it was 60 days ago, that also will help to stabilize the price. Glufosinate in contrast still is heavy in the distribution system. That will mean a competitive market most likely in the low $20 to $25 price range.

Now, outside of Glyphosate and Glufosinate what are prices looking like? If you are looking for post applied products for this season obviously you need to shop around to find your best deal (we feel confident it will be through Farmerceag.com). If you are looking to score major deals and have some 2023 money to spend before the end of the year you are in luck. Most indications point to retailers, distributers, manufactures cutting deals this fall when the industry fully realizes the amount of inventory. Interest rates being high will mean moving chemical out of warehouses will be a big priority. Products like Atrazine, Metolachlors, Acetochlors, Mesotriones, Clethodims, and others will be plentiful at good prices. Grabbing some of your needs in the "fall blitz" of Farmerce should put you in a great position. As this inventory levels get reduced in the fall and season approaches we will see more stable chem prices most likely slightly up over 2023 prices.

We are looking forward to seeing continued growth in our membership of buyers and sellers. We stay encouraged getting feedback about money saved and the ease of use within the Farmerce system.

What makes Farmerce immune to the market price swings?

We don't want the title to come across as cocky, no one is truly immune to changes. What we like to point out to current and new members of Farmerce is we do not get affected by price increases or decreases to the same effect that some traditional retailers do. This is simply because we never own inventory. We connect buyers with a network of sellers. It is the sellers inventory and they list the prices. Our buyers are in control of the market because you get to choose when the price is good enough to buy. If a seller is listing high priced product on our site they will get no transactions. If they bid too high on one of a buyers requests, they get no transactions. This kind of system creates the kind of competition needed to keep prices low. On top of that the entire Farmerce model was built with an "asset light" mentality. No buildings, no inventory, no trucks, just minimal employees and an easy-to-use platform. We are a group in the ag chemical business that have seen other e-commerce companies build a model that they think the growers need and it fails. We know growers need an easy to use, no bs, platform to be able to get good prices and service. Let us know what we can do to help at [email protected].

Unfortunately China Drives Ag Chem Prices. So what are prices in China doing?

Don't focus on the numbers as much as the over all trend. Down!

All credits for the charts go to David Li.

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